Capital gains tax in Belize

Belize occupies an unusual position among Central American and Caribbean jurisdictions: it has no capital gains tax (CGT) of any kind. Neither residents nor non-residents pay CGT when they sell property, shares, or other assets. Understanding what taxes do apply is essential before transacting in Belize.

Does Belize have a capital gains tax?

No. Belize does not impose a capital gains tax on individuals or corporations. Profits from selling real estate, shares, securities, or other capital assets are not subject to a standalone CGT levy under any current law. This has been consistently confirmed by the Belize Tax Service (BTS) and is reflected in the Income and Business Tax Act (IBTA), the primary statute governing direct taxation in the country. The absence of CGT is one feature that distinguishes Belize from major economies such as the United States (0-20% long-term rate), the United Kingdom (18-28% depending on asset class), and Canada (50% inclusion in income). Foreign residents of those countries who earn gains from Belizean assets should note that their home country may still tax those gains under worldwide-income rules; they should consult a qualified tax professional in their country of residence.

What is the Business Tax, and could it apply to asset sales?

Instead of a conventional corporate income tax on net profit, Belize charges a Business Tax (BT) on gross receipts -- that is, on total turnover before deducting any expenses. The rate varies by sector and is administered by the Belize Tax Service under the Income and Business Tax Act. Key sector rates are:

• 1.75% on receipts from general trade and business, domestic airlines, radio and television broadcasting, newspapers, and service-station fuel sales
• 3% on rental income from real property
• 6% on professional, vocational, and occupational services income
• 6.5% on electricity services
• 15% on receipts by banks and financial institutions, gaming establishments, and licensed real estate agents
• 19% on real-time voice telecommunications services

Business Tax is assessed on monthly receipts and is due by the 15th of the following month. For general trade and business, registration is required once annual turnover exceeds BZD 75,000 (approximately USD 37,500 at the fixed 2:1 peg). If a person sells assets as part of an ongoing business activity -- for example, a real estate agent turning over properties regularly -- the gross proceeds could constitute business receipts subject to BT. A one-off personal asset disposal, by contrast, does not normally constitute a "business" under the Act. Whether a particular transaction rises to the level of a business is a question of fact; a qualified tax professional familiar with Belizean law should assess borderline situations.

How does income tax apply to employment and professional income?

Employed residents of Belize pay income tax at a flat rate of 25% on chargeable income exceeding BZD 26,000 per year (approximately USD 13,000). Personal relief allowances graduated by income band significantly reduce effective rates for lower earners: those earning between BZD 26,001 and BZD 27,000 receive a relief of BZD 24,600; those earning between BZD 27,001 and BZD 29,000 receive BZD 22,600 relief; and those earning above BZD 29,000 receive BZD 19,600 relief. These thresholds were updated in the Income and Business Tax (Amendment) Act, 2024. Income from employment and self-employment is taxed; capital gains from asset disposals are not.

What stamp duty applies when property changes hands?

The primary levy on Belize property transactions is Stamp Duty, governed by the Stamp Duties Act (Chapter 64 of the Substantive Laws of Belize, most recently amended in 2024). The rates are:

• 5% of the property value for Belizean nationals and CARICOM residents
• 8% for foreign nationals who purchase in their own name
• 7% for foreign nationals purchasing through an International Business Company (IBC)

The first USD 10,000 (BZD 20,000) of a property's value is exempt; duty is charged only on the balance. Duty is calculated on the higher of the purchase price or the government's appraised market value as determined by the Lands Department. The buyer typically pays stamp duty at the time of registration of the transfer deed. The Stamp Duties (Amendment) Act, 2024 clarified that share transfers in IBCs used as property-holding vehicles are also subject to stamp duty, closing a previous structuring avenue.

Annual property tax is separately charged by local authorities, generally at 1-2% of the improved value of the land depending on municipality, and is modest relative to other jurisdictions.

What is the General Sales Tax (GST) and when does it apply?

Belize's General Sales Tax (GST) is charged at a standard rate of 12.5% on the supply of most goods and services, functioning similarly to VAT in other jurisdictions. It has been at 12.5% since 2010 and was confirmed in the General Sales Tax (Amendment) Act, 2024. Businesses with annual turnover above BZD 75,000 must register and charge GST. Basic food staples (rice, beans, flour, fresh meat, eggs, sugar, bread) are zero-rated; certain services including financial services, medicine, and school fees are exempt. GST applies to professional and commercial services, construction services, and most imported goods (alongside customs and import duties). A Belize property transaction itself does not attract GST -- Stamp Duty is the operative transfer levy -- but any professional service fees in connection with the transaction (legal, surveying, agent commissions above BZD 75,000 threshold) will carry GST.

What changed for Belize International Business Companies (IBCs) since 2019?

Historically, Belize IBCs were exempt from all domestic taxation on foreign-source income, making them a popular offshore vehicle. That changed materially following pressure from the OECD and the European Union's Code of Conduct Group on Business Taxation. The Economic Substance Act, 2019 (effective October 11, 2019) imposed economic substance requirements on IBCs engaged in certain relevant activities -- banking, insurance, fund management, finance and leasing, headquarters business, shipping, holding company activities, intellectual property, and distribution and service centre operations. IBCs meeting the criteria as "included entities" must demonstrate adequate people, premises, and expenditure in Belize or face penalties.

The Income and Business Tax (Amendment) Act, 2019 (Amendment No. 25/2019, effective January 1, 2020) abolished the historical foreign-income exemption for most IBCs. As of that date, Belize Business Companies (the IBC successor form under the International Business Companies Act as restructured) are subject to Business Tax on their worldwide receipts, not merely Belize-sourced receipts. The standard 1.75% gross-receipts rate applies to general trade and business; professional services attract 6%. IBCs may qualify for a tax exemption only if they qualify as a "non-included entity" under the Economic Substance Act and meet all four statutory conditions under section 106 of the IBTA. Annual tax returns for IBCs are due by March 31 and must be filed electronically via the Belize Tax Service's IRIS portal. Investors considering Belize IBC structures for holding or trading assets should obtain advice from a qualified tax professional given the significantly changed compliance landscape.

For a broader picture of Belize's tax environment and resident requirements, see the Belize country overview on this site. If you need personalised guidance -- whether on a property purchase, a business establishment, or cross-border filing obligations -- the right step is to engage a qualified tax professional with specific experience in Belizean law. The information on this page is a neutral educational summary, not a substitute for professional counsel.